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Hello
I am going to rollover my company 401K to an IRA
and will be including stocks as well as funds.Is there
any downside to opening the account with a discount
broker as far as mutual funds go?
Thank you
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Greetings, Sureyerrite, and welcome. You asked:

<<I am going to rollover my company 401K to an IRA
and will be including stocks as well as funds.Is there
any downside to opening the account with a discount
broker as far as mutual funds go?>>


Yes, if the broker charges a fee for a no load fund in particular. For instance, Vanguard no loads sold through a broker tend to have very high fees because they want you to buy directly with them. And if you do, there is no fee for purchase, which means more of your money goes to work for you. Also, brokers don't necessarily offer the fund you wish to purchase.

Regards..Pixy
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for sureyerrite:

When I quit working in 1993, I rolled all my 401k money over to Vanguard VFINX. Later, I changed the custodian of the VFINX investment to Schwab, where I put it in my existing IRA. There was no commission to any one doing it this way, and no start-up or maintenance fees from Schwab, either. Vanguard won't give any of its management fee to Schwab for holding my shares, unlike many other mutual fund management companies. Schwab is willing to hold my VFINX for me at no charge, evidently thinking that other business may come their way from me. They were right about that, but the VFINX still sits, untouched except for reinvesting dividends, where I put it six years ago. There is no charge for the dividend reinvestment from either Schwab or Vanguard.

Alternatively, you could pay Schwab a little to buy a Vanguard fund for your IRA account at Schwab. I believe Schwab has a maximum fee for investing in no-load funds such as Vanguard's, regardless of how much Schwab puts into a Vanguard fund for you. That fee is around $149, if my memory is correct. A Schwab representative told me recently that I could sell all my VFINX through Schwab for just that fee. So, if your 401k balance is reasonably large, Schwab's fee is a neglible percentage and, if your strategy is LTBH, paying it will be a rare event. You can even do a partial transfer of the VFINX back to Vanguard and liquidate it for free there as an IRA withdrawal.

Full disclosure: I don't work for Schwab. I don't work for anyone. I'm happy with Schwab's service. Retirement is joyous.

Regards,

Chips
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One other thing you may want to look at is taking the
stock out of the 401k/IRA.

If the stock has appreciated greatly, It might be worth
your while to transfer it to a taxable account and pay
the tax & penalty on the price of the stock when you bought it.

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